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Earnings season continues to wind down, with the reporting docket shrinking every week. So far, earnings have primarily been better-than-feared, helping buoy the market during a somewhat-cloudy economic outlook.
And just yesterday, we received quarterly results from cybersecurity titan Palo Alto Networks (PANW - Free Report) . Palo Alto shares have been red-hot in 2023 so far, up more than 40% and widely outperforming the general market.
Investors were impressed with the quarterly results, just as they were last quarter, as we can see illustrated by the chart below.
Image Source: Zacks Investment Research
Let’s dive deeper into the quarterly release and how the company currently stacks up.
Quarterly Results
PANW posted strong results, exceeding the Zacks Consensus EPS Estimate by 20% and delivering a modest revenue surprise. Impressively, it reflected the company’s 13th consecutive quarter of beating both earnings and revenue expectations.
Image Source: Zacks Investment Research
In addition, the company’s remaining performance obligation grew 35% year-over-year to $9.2 billion, with Billings seeing growth of 26% from the year-ago quarter. Impressively, the company’s operating income (non-GAAP) totaled $407 million, improving a rock-solid 61% from the year-ago quarter.
Nikesh Arora, CEO, said,"Our team again executed well in a market that continues to become more challenging. Our strategy of delivering best-of-breed products within our three platforms is helping customers simplify their security architectures and consolidate vendors."
Following the strong results, PANW raised its cash flow margin guidance into a range of 37.5% - 38.5% for its current fiscal year (FY23).
Current Standing
PANW shares may not entice value-focused investors, with the current 8.3X forward price-to-sales ratio sitting well above the 7.5X five-year median and the Zacks Computer and Technology sector average.
Still, the premium becomes more reasonable when factoring in the company’s rapid growth.
Image Source: Zacks Investment Research
Shares have recently witnessed the golden cross and found support at the 200-day moving average, as we can see illustrated in the chart below. The $200 per share threshold was stubborn, but the recent quarterly results provided shares the fuel they needed to break through.
Image Source: Zacks Investment Research
Bottom Line
The Q1 earnings cycle brought us many surprises, most of which have helped keep sentiment in check.
And just today, we got a big surprise from cybersecurity titan Palo Alto Networks (PANW - Free Report) , with the company posting a double-beat and raising cash flow margin guidance.
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What's Going On With Palo Alto Networks Shares?
Earnings season continues to wind down, with the reporting docket shrinking every week. So far, earnings have primarily been better-than-feared, helping buoy the market during a somewhat-cloudy economic outlook.
And just yesterday, we received quarterly results from cybersecurity titan Palo Alto Networks (PANW - Free Report) . Palo Alto shares have been red-hot in 2023 so far, up more than 40% and widely outperforming the general market.
Investors were impressed with the quarterly results, just as they were last quarter, as we can see illustrated by the chart below.
Image Source: Zacks Investment Research
Let’s dive deeper into the quarterly release and how the company currently stacks up.
Quarterly Results
PANW posted strong results, exceeding the Zacks Consensus EPS Estimate by 20% and delivering a modest revenue surprise. Impressively, it reflected the company’s 13th consecutive quarter of beating both earnings and revenue expectations.
Image Source: Zacks Investment Research
In addition, the company’s remaining performance obligation grew 35% year-over-year to $9.2 billion, with Billings seeing growth of 26% from the year-ago quarter. Impressively, the company’s operating income (non-GAAP) totaled $407 million, improving a rock-solid 61% from the year-ago quarter.
Nikesh Arora, CEO, said,"Our team again executed well in a market that continues to become more challenging. Our strategy of delivering best-of-breed products within our three platforms is helping customers simplify their security architectures and consolidate vendors."
Following the strong results, PANW raised its cash flow margin guidance into a range of 37.5% - 38.5% for its current fiscal year (FY23).
Current Standing
PANW shares may not entice value-focused investors, with the current 8.3X forward price-to-sales ratio sitting well above the 7.5X five-year median and the Zacks Computer and Technology sector average.
Still, the premium becomes more reasonable when factoring in the company’s rapid growth.
Image Source: Zacks Investment Research
Shares have recently witnessed the golden cross and found support at the 200-day moving average, as we can see illustrated in the chart below. The $200 per share threshold was stubborn, but the recent quarterly results provided shares the fuel they needed to break through.
Image Source: Zacks Investment Research
Bottom Line
The Q1 earnings cycle brought us many surprises, most of which have helped keep sentiment in check.
And just today, we got a big surprise from cybersecurity titan Palo Alto Networks (PANW - Free Report) , with the company posting a double-beat and raising cash flow margin guidance.